Outline

• Mining Industry in the Philippines

• RA 7942
• Introductory Provisions
• Government Management
• Scope of Application
• Exploration Permit
• Mineral Agreements
• Financial and Technical Assistance
Agreement
• Quarry Resources
• Transport, Sale and Processing of Minerals
• Issues
• Conclusion
 Mining Industry in the
Philippines

About 30
Mining in the The Philippines All regions,
$840 billion 212,0000 million
Philippines has is actually the except NCR
worth workers are hectares of
been known fifth most and ARMM
untapped currently land areas in
early as year mineral-rich allow
mineral employed in the country is
1521 country in the mining
wealth minerals deemed as
world for operations.
industry as of possible areas
copper, nickel, 2018. for metallic
gold and minerals.
chromite. 
 RA No. 7942
Philippine Mining Act of 1995
An Act Instituting a New System of Mineral Resources
Exploration, Development, Utilization and Conservation
Introductory Provisions
 Section 2: Declaration of Policy
• All mineral resources in public and
private lands within the territory
and exclusive economic zone of
the Republic of the Philippines are
owned by the State. It shall be the
responsibility of the State to
promote their rational
exploration, development,
utilization and conservation
through the combined efforts of
government and the private
sector in order to enhance
national growth in a way that
effectively safeguards the
environment and protect the
rights of affected communities.
Government Management
Section 4: Ownership and
Mineral Resources • Mineral resources are owned by
the State and the exploration,
development, utilization, and
processing thereof shall be
under its full control and
supervision. The State may
directly undertake such activities or
it may enter into mineral
agreements with contractors
• The State shall recognize and
protect the rights of the indigenous
cultural communities to their
ancestral lands as provided for by
the Constitution.
 • When the national interest so
Section 5: Mineral
requires, such as when there is
Reservations a need to preserve strategic raw
materials for industries critical
to national development, or
certain minerals for scientific,
cultural or ecological value, the
President may establish
mineral reservations upon
the recommendation of the
Director through the
Secretary.
• Mining operations in Section 5: Mineral
existing mineral Reservations
reservations and such
other reservations as may
thereafter be established,
shall be undertaken by
the Department or
through a contractor
 Section 5: Mineral
Reservations
• All submerged lands within the
contiguous zone and in the
exclusive economic zone of the
Philippines are hereby declared to
be mineral reservations.
Section 6: Other
Reservations
• Mining operations in reserved lands
other than mineral reservations may
be undertaken by the Department,
subject to limitations as herein
provided
• In the event that the Department
cannot undertake such activities, they
may be undertaken by a qualified
person in accordance with the rules
and regulations promulgated by the
Secretary.
Section 7: Periodic Reviews of Existing Mineral Reservations
• The Secretary shall
periodically review existing
mineral reservations for the
purpose of determining
whether their continued
existence is consistent with
the national interest, and
upon his recommendation, the
President may, by proclamation,
alter or modify the boundaries
thereof or revert the same to
the public domain without
prejudice to prior existing rights.
 Section 8: Authority of the Department (DENR)
• The Department shall be the primary
agency responsible for the
conservation, management,
development, and proper use of
the State's mineral resources
including those in reservations,
watershed areas, and lands of the
public domain.
• The Secretary shall have the
authority to enter into mineral
agreements on behalf of the
Government upon the recommendation
of the Director, promulgate such
rules and regulations as may be
necessary to implement the intent and
provisions of this Act.
 Section 9: Authority of the Bureau (Mines and Geosciences)
The Bureau:
• have direct charge in the
The Director:
administration and • shall recommend to
disposition of mineral lands the Secretary the
and mineral resources
granting of mineral
• Undertake geological,
mining, metallurgical, agreements to duly
chemical, geological, and qualified persons
other researches and • shall monitor the
mineral exploration surveys
• may
compliance by the
confiscate surety,
performance and guaranty contractor of the
bonds posted through an terms and conditions
order to be promulgated by of the mineral
the Director.
agreements.
Section 10: Regional Offices Section 11: Processing of
Applications

There shall be as many

The system of processing
regional offices in the
applications for mining
country as may be
rights shall be prescribed
established by the
in the rules and
Secretary, upon the
regulations of this Act.
recommendation of the
Director.
Section 12. Survey, Charting
and Delineation of Mining Areas
• A sketch plan or map of the contract or
mining area prepared by a deputized
geodetic engineer suitable for publication
purposes shall be required during the filing
of a mineral agreement or financial or
technical assistance agreement application.
• Thereafter, the contract or mining area
shall be surveyed and monumented by a
deputized geodetic engineer and the survey
plan shall be approved by the Director
before the approval of the mining feasibility.
Section 13. Meridional
Blocks
For purposes of the delineation
of the contract or mining
areas under this Act, the
Philippine territory and its
exclusive economic zone shall
be divided into meridional
blocks of one-half (1/2)
minute of latitude and one-
half (1/2) minute of longitude.
Scope of Application
 Section 15. Scope of
Application
•This Act shall govern the exploration,
development, utilization and
processing of all mineral resources.
Section 17. Royalty Payments for
Indigenous Cultural Communities
Section 16. Opening of Ancestral
Lands for Mining Operations
No ancestral land shall be opened
for mining operations without the
prior consent of the indigenous
cultural community concerned.
•In the event of an agreement with an
indigenous cultural community pursuant to
the preceding section, the royalty
payment, upon utilization of the
minerals shall be agreed upon by the
parties. The said royalty shall form part of
a trust fund for the socioeconomic well-
being of the indigenous cultural community.
Section 18. Areas Open to
Mining Operations

• all mineral resources in

public or private lands,
including timber or forestlands as
defined in existing laws, shall be
open to mineral agreements or
financial or technical assistance
agreement applications.

•Any conflict that may arise

under this provision shall be
heard and resolved by the panel
of arbitrators.
• Section 19. Areas Closed to
Mining Applications
• In military and other • In areas covered by
government small-scale miners
reservations,
• Old growth or virgin
• Near or under public forests, and in areas
or private expressly prohibited under
buildings/property; the National Integrated
• In areas covered by Protected Area System
valid and existing (NIPAS) under Republic Act
mining rights; No. 7586, Department
Administrative Order No. 25,
• In areas expressly series of 1992 and other laws
prohibited by law;
Exploration Permit

Exploration Permit
•An exploration permit
grants the right to
conduct exploration for
all minerals in specified
areas. The Bureau shall
have the authority to grant
an exploration permit to a
qualified person. (Section
20)
An exploration permit shall
be for a period of two (2)
years, subject to annual
review and relinquishment
or renewal upon the
recommendation of the
Director. (Section 21)
Maximum Areas for
Exploration Permit
• Onshore, in any one province
• For individuals: 20 blocks
• For partnerships,
corporations, cooperatives, or
associations: 200 blocks
• Onshore, in the entire Philippines
• For individuals: 40 blocks
• For partnerships,
corporations, cooperatives, or
associations: 400 blocks
•Offshore, beyond five hundred
meters (500m) from the mean low
tide level
• For individuals: 100 blocks
• For partnerships,
corporations, cooperatives, or
associations: 1,000 block
- Section 23
• Section 23. Rights and
Obligations of the Permittee
• if private or other parties are affected,
the permittee shall first discuss with the
said parties the extent, necessity, and
manner of his entry, occupation and
exploration and in case of disagreement,
a panel of arbitrators shall resolve the
conflict or disagreement.
• shall undertake an exploration work on
the area as specified by its permit based
on an approved work program.
• may apply for a mineral production
sharing agreement, joint venture
agreement, co-production agreement or
financial or technical assistance
agreement over the permit area
• Section 24. Declaration of
Mining Project Feasibility.
• A holder of an exploration permit who
determines the commercial viability of
a project covering a mining area may,
within the term of the permit, file with
the Bureau a declaration of mining
project feasibility accompanied by a
work program for development.
• Section 25. Transfer or
Assignment
• An exploration permit may be transferred
or assigned to a qualified person subject
to the approval of the Secretary upon the
recommendation of the Director.
Mineral Agreements
Mineral Agreement Who are eligible to enter into a
• A mineral agreement shall grant to the mineral agreement?
contractor the exclusive right to
conduct mining operations and to • Any citizen of the Philippines with a capacity
extract all mineral resources found in the to contract
contract area. • A corporation partnership, association, or
cooperative organized or authorized for the
• Section 26. Modes of Mineral purpose of engaging in mining, with technical
Agreement and financial capability to undertake mineral
resources development and duly registered in
• Mineral Production accordance with law at least sixty per centum
Sharing Agreement (60%) of the capital of which is owned by
citizens of the Philippines
• Co-production Sharing
• NOTE: in case the applicant has been in the
Agreement mining industry for any length of time, he
• Joint-Venture Agreement should possess a satisfactory environmental
track record as determined by the Mines and
Geosciences Bureau and in consultation with
the Environmental Management Bureau of the
Department
Section 28. Maximum Areas for
Mineral Agreement
• Onshore, in any one province –
• For individuals: 10 blocks;
• For partnerships, cooperatives,
associations, or corporations: 100
blocks.
• Onshore, in the entire Philippines –
• For individuals: 20 blocks;
• For partnerships, cooperatives,
associations, or corporations: 200
blocks.
• Offshore, in the entire Philippines –
• For individuals: 50 blocks;
• For partnerships, cooperatives,
associations, or corporations: 500
blocks; and
• For the exclusive economic zone, a larger
area to be determined by the
Secretary.
Section 29. Filing and Approval
of Mineral Agreements
• All proposed mineral agreements shall be
filed in the region where the areas of
interest are located
Section 29. Filing and Approval
of Mineral Agreements
• Any assignment or transfer of rights and
obligations under any mineral agreement
except a financial or technical assistance
agreement shall be subject to the prior
approval of the Secretary. Such
assignment or transfer shall be deemed
automatically approved if not acted upon
by the Secretary within thirty (30)
working days from official receipt thereof,
unless patently unconstitutional or illegal
Section 31.
Withdrawal from
Mineral Agreements Section 32. Terms
• 25 years
•The contractor may, by giving
• Renewable for another 25
due notice at any time during years
the term of the agreement,
apply for the cancellation of •After the renewal period the
the mineral agreement due to operation of the mine may be
undertaken by the Government
causes which, in the opinion of
or through a contractor.
the contractor, make
continued mining operations
no longer feasible or viable.
The Secretary shall consider
the notice and issue its
decision within a period of
thirty (30) days: Provided, That
the contractor has met all its
financial, fiscal and legal
obligations.
Financial Or Technical
Assistance Agreement
Financial or Technical Assistance
Agreement
• a contract involving financial or
technical assistance for large-scale
exploration, development, and
utilization of mineral resources
• Section 34. Maximum
Contract Area
• 1,000 meridional blocks onshore
• 4,000 meridional blocks offshore; or
• Combinations of (a) and (b)
provided that it shall not exceed
the maximum limits for onshore
and offshore areas.
Who are eligible to enter into a financial
or technical assistance agreement?
• Any qualified person with technical
and financial capability to undertake
large-scale exploration,
development, and utilization of
mineral resources in the Philippines
may enter into a financial or technical
assistance agreement directly with the
Government through the Department.
(Section 33)

• "Block" or "meridional block" means an area bounded

by one-half (1/2) minute of latitude and one-half (1/2)
minute of longitude, containing approximately 81 has.
 Term of FTA
Agreements Assignment/Transfer
•A financial or technical
• 25 years assistance agreement may be
• Renewable for another 25 assigned or transferred, in
whole or in part, to a qualified
years (Section 38)
person subject to the prior
approval of the President
(Section 40)
Negotiations
•A financial or technical
assistance agreement shall be
negotiated by the
Department and executed
and approved by the
President. The President shall
notify Congress of all financial or
technical assistance agreements
within thirty (30) days from
execution and approval thereof.
(Section 39)
 Withdrawal from Financial
Option to Convert into or Technical Assistance
a Mineral Agreement Agreement
•The contractor shall manifest
•The contractor has the option to in writing to the Secretary his
convert to a mineral agreement at any intentions to withdraw from the
time during the term of the agreement,
agreement, if in his judgment
• if the economic viability of the the mining project is no
contract area is found to be
inadequate to justify large-scale
longer economically
mining operations, feasible, even after he has
• after proper notice to the Secretary
exerted reasonable diligence to
as provided for under the remedy the cause or the
implementing rules and regulations: situation. (Section 41)
Provided, That the mineral
agreement shall only be for the
remaining period of the original
agreement.
•In case of a foreign contractor, it shall
reduce its equity to forty percent
(40%) in the corporation, partnership,
association, or cooperative. Upon
compliance with this requirement by the
contractor,
Quarry Resources
Quarry Resources Quarrying
• any common rock or other • the process of extracting,
mineral substances as the removing and disposing quarry
resources found on or underneath
Director of Mines and the surface of private or public
Geosciences Bureau may land.
declare to be quarry
resources
• Basalt
• Granite
• Limestone
• Marble
Quarry permit
• means a document granted to a qualified
person for the extraction and utilization of
quarry resources on public or private
lands.
Maximum Area - 5 hectares
Term – 5 years, renewable for like periods
but not to exceed a total term of 25 years
No quarry permit shall be issued or granted
on any area covered by a mineral
agreement, or financial or technical
assistance agreement.
Cancellation - may be canceled by the
provincial governor for violations of the
provisions of this Act or its implementing
rules and regulations or the terms and
conditions of said permit
Other permits
• Commercial Sand and Gravel
Permit
• Industrial Sand and Gravel Permit
• Exclusive Sand and Gravel Permit
• Government Gratuitous Permit
• Private Gratuitous Permit
• Guano Permit
• Gemstone Gathering Permit
Transport, Sale and Processing
of Minerals
Transport, Sale And Processing Of Minerals
Ore Transport Permit

• A permit specifying the origin and

quantity of non-processed mineral ores
or minerals
• issued by the mines regional director who has
jurisdiction over the area where the ores were
extracted
• absence of a permit shall be considered as
prima facie evidence of illegal mining and
shall be sufficient cause for the Government
to confiscate the ores or minerals being
transported, the tools and equipment utilized,
and the vehicle containing the same.
• Exception: Ore samples not exceeding two
metric tons (2 m.t.) to be used exclusively for
assay or pilot test purposes
• Section 53
Transport, Sale And Processing Of Minerals
Mineral Trading Registration Minerals Processing Permit

• No person shall engage in the trading of • No person shall engage in the processing
mineral products, either locally or of minerals without first securing a
internationally, unless registered with the minerals processing permit from the
Department of Trade and Industry and
Secretary
accredited by the Department, with a copy of
said registration submitted to the Bureau. • shall be for a period of five (5) years
(Section 54) renewable for like periods but not to
exceed a total term of twenty-five (25)
years (Section 55)
• A foreign-owned/-controlled corporation
may be granted a mineral processing
permit. (Section 56)
Issues
Issues in the Mining Industry
Social and Environmental Issues Implementation Issues
• Air Pollution • Circumvention of permits
• Water Contamination • Interfacing with LGUs
• Soil Degradation • Delays in the declaration of IP claims
• Ecosystem Destruction
• Human Rights Violations
• Loss of Livelihood
• Displacement
• Food Insecurity
• Health Issues
Issues in the Mining Industry
Social and Environmental Issues Implementation Issues
• Air Pollution • Circumvention of permits
• Water Contamination • Interfacing with LGUs
• Soil Degradation • Delays in the declaration of IP claims
• Ecosystem Destruction
• Human Rights Violations
• Loss of Livelihood
• Displacement
• Food Insecurity
• Health Issues
Issues in the Mining Industry
Social and Environmental Issues Implementation Issues
• Air Pollution • Interfacing with LGUs
• Water Contamination • Circumvention of permits
• Soil Degradation • Delays in the declaration of IP claims
• Ecosystem Destruction
• Institutional issues
• Loss of Livelihood • Philippine Institute for Development Studies

• Displacement
• Food Insecurity
• Health Issues
• Human Rights Violations
- “The effects of Mining Industry in the Philippines” by: Marydel
Mitch Flores
Conclusion
THANK YOU!

Report by:
Andrea S. Guillergan